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FEDERAL RESERVE BANK O F N EW YORK f C ir c u la r N o. 4 3 1 0 1 I F e b r u a r y 16, 1956 J Fiscal Agent of the United States Offering o f $1,600,000,000 o f 91-Day Treasury Bills Dated February 2 3 ,195 6 Maturing May 24, 1956 To all Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text o f a notice published today: F O R R E L E A S E , M O R N IN G N E W S P A P E R S , T h u rsd a y , F eb ru a ry 16, 1956. TREASU RY DEPARTM ENT W ashington T h e T r e a s u ry D epa rtm en t, b y this pu blic n otice, invites tenders for $1,600,000,000, o r th ereabouts, o f 9 1-d ay T rea su ry bills, fo r cash and in exch a n ge fo r T rea su ry bills m atu rin g F ebru ary 23, 1956, in the a m ou n t o f $1,600,093,000, to be issued on a discou n t basis under com p etitive and n on com p etitive b id d in g as h ereinafter provided . T h e bills o f this series w ill be dated F eb ru a ry 23, 1956, and w ill m ature M a y 24, 1956, w h en th e face a m ou n t w ill be pa ya b le w ith ou t interest. T h e y w ill be issued in bearer fo r m o n ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m a tu rity v a lu e ). T e n d e rs w ill be re ceiv ed at F ed era l R e serv e B an ks a n d B ra n ch es up t o the clo s in g h our, on e -th irty o ’ c lo c k p.m ., E astern Standard tim e, M on d a y, F eb ru a ry 20, 1956. T en d ers w ill n ot be received at the T rea su ry D epartm en t, W a sh in g ton . E ach ten der m u st b e fo r an even m u ltiple o f $1,000, and in th e case o f com p etitive ten ders th e p r ice offered m u st be exp ressed on the basis o f 100, w ith n ot m o re than th ree decim a ls, e. g., 99.925. F raction s m a y n ot be used. It is u rged that ten ders be m ade o n th e printed^ fo rm s a n d forw a rd ed in the special en velop es w h ich w ill b e supplied b y F ed eral R e serv e B ank s o r B ra n ch es o n a pp lica tion th erefor. O th e rs than b ank in g institutions w ill n ot be perm itted t o subm it ten ders e x cep t fo r th eir o w n a ccou n t. T e n d e rs w ill be receiv ed w ith ou t d ep o sit fr o m in corp ora ted banks and trust co m p a n ie s and fr o m resp on sib le and re co g n iz e d dealers in in vest m en t securities. T e n d e rs fro m oth ers m u st be a ccom p a n ied b y paym ent o f 2 p ercen t o f the fa ce a m ou n t o f T r e a s u ry bills a pp lied fo r, unless the tenders are a ccom p a n ied b y a n ex p ress gu a ra n ty o f pa ym en t b y an in corp ora ted bank o r trust com p a n y . Im m ed ia tely a fter the clo s in g h our, ten ders w ill b e o p en ed at the F ed eral R e serv e B anks and B ran ches, fo llo w in g w hich pu b lic a n n ou n cem en t w ill be m a d e b y th e T rea su ry D ep a rtm en t o f th e a m ou n t a n d p rice ran ge o f a ccep ted bids. T h o s e su b m ittin g ten ders w ill be a d vised o f the a ccep ta n ce o r re je ctio n th ereof. T h e S ecreta ry o f the T rea su ry exp ressly reserves the rig h t t o a cce p t o r re je ct a n y o r all tenders, in w h o le o r in part, and his a ction in a n y such resp ect shall b e final. S u b je ct to these reservations, n on com p etitive tenders fo r $200,000 o r less w ith ou t stated p rice fr o m any o n e b idd er w ill b e a cce p te d in fu ll a t the a vera ge p rice (in three decim a ls) o f a ccep ted co m p e titiv e bids. Settlem ent fo r a ccep ted ten d ers in a ccord a n ce w ith the bids m u st be m ade o r com p leted at the F ed eral R eserve B ank on F eb ru a ry 23, 1956, in cash o r o th e r im m ediately available fu n ds o r in a like face am ou nt o f T rea su ry bills m aturing F eb ru a ry 23, 1956. Cash and exch a n ge ten ders w ill re ceive eq u a l treatm ent. Cash adjustm ents w ill b e m ade fo r d ifferen ces betw een th e par valu e o f m a tu rin g bills a ccep te d in e x ch a n g e a n d the issue price o f th e n ew bills. T h e in co m e derived fr o m T rea su ry bills, w h eth er in terest o r gain fro m th e sale o r oth er d isp osition o f th e b ills, d o e s n o t have a n y e x e m p tion , as such, and loss fr o m th e sale o r oth er d isp osition o f T r e a s u ry bills d o e s n ot have a n y sp ecia l treat m en t, as such, under the In tern al R even u e C od e o f 1954. T h e b ills are su b ject t o estate, inheritance, g ift o r oth er e x cis e taxes, w hether F ed era l o r State, but are exem p t fro m all ta xation n o w o r h erea fter im p osed on th e principal o r interest th e re o f b y a n y State, o r a n y o f the p ossession s o f th e U n ited States, o r b y a n y lo ca l ta x in g authority. F o r pu rp oses o f taxation the am ou n t o f d isco u n t at w h ich T rea su ry bills are o rigin a lly s o ld b y the U n ited States is con sidered t o be interest. U n d e r S e ctio n s 4 5 4 (b ) and 1221(5) o f the In tern al R even u e C o d e o f 1954 the a m ou n t o f d iscou n t at w h ich bills issu ed hereunder are so ld is n o t co n sid ered t o a ccru e until su ch bills are so ld , red eem ed o r oth erw ise disp osed o f , and su ch bills are exclu d e d fr o m con sidera tion as capital assets. A c c o r d in g ly , th e o w n e r o f T rea su ry bills (o th e r than life insurance com p a n ies) issued hereunder need in clude in his in com e tax return o n ly th e differen ce betw een the p rice pa id fo r such bills, w h eth er o n origin al issue o r o n subsequen t pu rch ase, a n d the a m ou n t actu a lly receiv ed eith er u pon sale o r redem ption at m atu rity d u rin g the taxable yea r f o r w h ich th e return is m ade, as ord in a ry ga in o r loss. T re a su ry D epa rtm en t C ircu lar N o . 418, R evised , and this n otice, p rescrib e the term s o f the T rea su ry bills and g o v e rn the con d ition s o f their issue. C op ies o f the circu la r m a y b e ob ta in ed fr o m a n y F ed era l R eserve B a n k o r B ran ch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Monday, February 20, 1956, at the Securi ties Department o f its Head Office and at its Buffalo Branch. Please use the form on the reverse side o f this circular to submit a tender, and return it in an envelope marked “ Tender for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Payment fo r the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A l l a n S p r o u l , President. Results o f last offering o f Treasury bills (91-day bills dated February 16, 1956, maturing May 17, 1956) T o t a l applied f o r .......... $2,389,082,000 T o t a l a c c e p t e d ...............$1,600,052,000 (in clu des $206,904,000 entered on a n on com petitive basis and a ccepted in full at the average price sh ow n b e lo w ) A v e ra g e p rice........ 9 9 .3 9 6 + E quivalent rate o f discou nt a p p rox. 2 .388% p er annum R a n g e o f a ccep ted com p etitive b ids: H i g h ..................... 99.443 E quivalent rate a p p rox. 2 .204% L o w ..................... 99.392 E quivalent rate a p p rox. 2 .405% o f discou nt p er annum o f discou n t per annum Federal Reserve District B oston .............................. N ew Y o r k ..................... Philadelphia C levelan d ........ R ich m o n d ....... A tlanta ........... C h ica go ............ St. L ou is .......... M in n ea p olis ... K ansas C ity .... D allas .............. San F ra n cisco Total Applied for $ 23,231,000 1,725,471,000 34.035.000 73.621.000 15.422.000 25.882.000 241,320,000 20.228.000 22.404.000 40.470.000 36.441.000 130,557,000 (2 0 p e r c e n t o f th e a m o u n t b id f o r at th e lo w p r ic e w a s a c c e p t e d ) T o t a l ......... $2,389,082,000 Total Accepted $ 19,231,000 1,015,171,000 13.385.000 67.621.000 15.422.000 25.382.000 210.520.000 20.228.000 22.024.000 40.470.000 20.841.000 129.757.000 $1,600,052,000 ( over) 34 W IM P O R T A N T — I f you desire to bid on a c o m p e titiv e basis, fill in rate per 100 and m aturity value in paragraph headed "Com petitive Bid.” I f you desire to bid on a n o n co m p e titiv e basis, fill in only the maturity value in paragraph headed "Noncom petitive Bid.” DO N O T fill in b o th p a ragraph s o n on e fo r m . A separate tender must be used fo r each bid, except that banks submitting bids on a competitive basis fo r their own and their customers’ accounts may submit one tender fo r the total amount bid at each price, provided a list is attached showing the o f each bidder, the amount bid fo r his account, and method o f payment. Forms for this purpose w ill be furnished upon request. N o ______________ TENDER FOR 91-D A Y TREASURY BILLS Maturing May 24, 1956 Dated February 23 , 1956 Dated at-------------------------------------------- T o F ederal R eserve B a n k of N ew Y ork , Fiscal A gent o f the United States. ________________________________ 1956 COMPETITIVE BED NONCOMPETITIVE BID Pursuant to the provisions o f Treas ury Department Circular N o. 418, Revised, and to the provisions o f the public n o tice on February 16, 1956, as issued by the Treasury Department, the undersigned offers Pursuant to the provisions o f Treasury De partment Circular No. 418, Revised, and to the provisions of the public notice on February 16, 1956, as issued by the Treasury Department, the undersigned offers a noncompetitive tender __________________________* for a total amount o f for a total amount o f $________________________ (Rate per 100) (N ot to exceed $200,000) $________________________________(maturity value) o f the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated b elow : □ B y surrender o f maturing Treasury bills (maturity value) o f the Treasury bills therein described, at the average price (in three deci mals) of accepted competitive bids, settlement therefor to be made at your Bank, on the date stated in the public notice, as indicated below: □ By surrender of maturing Treasury bills amounting t o ........................$--------------------------------- amounting t o ...................... $____________________ □ □ B y cash or other immediately available funds By cash or other immediately available funds *Price must be expressed on the basis o f 100, with not more than three decimal places, fo r example, 99.925. The Treasury bills for which tender is hereby made are to be dated February 23, 1956, and are to mature on M ay 24, 1956. This tender will be inserted in special envelope marked “ Tender fo r Treasury Bills.” Name of Bidder ........................................................................................................... (Please print) B y ............................................................................................................ . (Official signature required) (Title ) Street Address ............................................................................................................ (C ity, T ow n or V illage, P. O. N o., and State) If this tender is submitted by a bank for the account of a customer, indicate the customer’s name on line below: (N am e o f Custom er) IM PORTANT INSTRUCTIONS: 1. N o ten der fo r less than $1,000 w ill (C ity, T ow n o r V illage, P . O. No., an d State) be con sid ered , and each ten der m u st be fo r an even m u ltiple o f $1,000 (m a tu rity v a lu e ). 2. I f the person m a k in g the ten der is a corp ora tion , th e ten der sh ou ld be sign ed by an officer o f th e co rp o ra tion a uthorized t o m ake th e tender, and th e s ig n in g o f the te n d e r b y an officer o f the co rp o ra tio n w ill b e con stru ed as a represen tation b y h im that he has b een s o auth orized. I f the tender is m a d e b y a partnership, it sh ou ld b e sign ed b y a m e m b e r o f the firm , w h o sh ou ld sign in the fo r m “ ...................................................................................................... . a cop artn ersh ip, b y :...................................................................................................................... a m em b er o f the firm .” 3. T e n d e rs w ill be receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies and fr o m re sp o n sible and re co g n iz e d dealers in in vestm ent securities. T e n d e rs fro m oth ers m u st be a ccom p a n ied b y pa ym en t o f 2 percent o f the fa ce a m ou n t o f T rea su ry bills applied fo r, u nless the tenders are a ccom p a n ied b y an exp ress gu a ra n ty o f paym ent b y an in co rp o ra te d ba n k o r trust com p a n y . 4. I f the language o f this ten der is ch a n ged in a n y respect, w hich, in th e op in ion o f the S ecreta ry o f the T re a su ry , is m aterial, the ten d er m a y be disregarded. P a y m en t b y c r e d it th r o u g h T r e a s u r y T a x and L oan A c c o u n t w ill n o t b e p er m itte d . http://fraser.stlouisfed.org/ T E N T B — 1 3 3 8 -a Federal Reserve Bank of St. Louis ( over)
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